June 2008 Debt Report
Debts Paid in Full:
- Debts paid in full: 8
- Amount paid in full: $5,345
Status Report:
- May 2008 payments: $526.84
- Total amount of payments made to date: $13,983
- Debts left to pay off: 22
Balance Report:
- Original Debt Balance: $246,281
- Current Debt Balance: $250,654
- Balance change since starting the plan (April 2007): $4,373 (increase)
Total debt balance including 1st mortgage on house: $368,270
After Bankruptcy Projection:
Debt remaining after bankruptcy:
Debt snowball:
- CFCU Visa: $4,596.53
- Chase HELOC: $5,020.19
- Capital One HELOC: $21,576.12
First mortgage balance: $117,616
Debt Balance excluding co-signed student loans and first mortgage: $31,193
Total debt including first mortgage, excluding student loans: $148,809
- 148,809/368,270 = 0.53 x 100 = 53% of the total debt will remain
Student Loans:
- Co-signed student loan approximate balance: $45,238 (need a complete audit on these accounts; not sure this balance is correct or even close)
Possible total balance including 1st mortgage: $194,047
Discussion
When I calculate debt remaining, I mean everything but my house (1st mortgage), so remaining would be $31,193 if I don’t have to pay the student loan, and $76,431 if I do. Total debt excluding the 1st mortgage is $250,654.
Calculating what I’ll have left to pay as a percent without the student loans is as follows: 31,193/205,416 = 0.152 x 100 = 15.2%
Including the student loan, the percentage will be: 76,431/250,654 = 0.305 x 100 = 30.5%
I’ll be wiping out 84.8% to 69.5% of the debt in the bankruptcy.
Why do I leave out the debt on my first mortgage?
- We have to live somewhere and pay either rent or a mortgage. Selling my house would wipe out almost all of those debts, but it wouldn’t change the fact that we have to pay for a place to live.
- Rent in our area is still inflated from Hurricanes Katrina and Rita. A smaller rental house runs $1500 to $1800 per month. Even with the 2nd mortgages we’re better off staying where we are, paying less per month to live, and not incurring all the expenses of moving.
My 1st mortgage payment totals $980.73 and includes the following:
- P & I – $739.14
- PMI – $66.34
- Remaining escrow (taxes, insurance) – $175.25
Second mortgage payments are:
- $76
- $130
Total to stay in current house: $1,186.73
Why a house? We have 3 animals, including two large dogs (65 lb and 85 lb). It’s hard to find any rental at all that will allow one large dog, let alone two. An apartment is completely out of the question. Our animals are part of the family and we’re not giving them up.
FYI: The going rate for a 2 bedroom, 1 bathroom apartment is currently $900/mo anyway. If we move to an apartment I’d have to pay to store some furniture, and storage facilities also have inflated rental prices. The size I would need costs $100/mo.
Co-signed Student Loan
I still haven’t received anymore notices from the student loan people. It’s possible the friend I co-signed for is paying them again. The bankruptcy trustee will require an audit of these accounts as part of my remaining obligations and I have to call and request it.
I didn’t pay anything on the debts I’m going to bankrupt. I don’t see the point of spending money on them when they will be gone soon.
Tutoring is busy this summer
I don’t have many LEAP students, but my tutoring company has scheduled me for 10 hours per week so far, and more students are coming each week for summer enrichment in math and reading/language arts. If you don’t know what LEAP is, please go back to my May 2008 Debt Report and read about it there.
I’m pleasantly surprised because I didn’t have any company students last summer. This summer I started tutoring the week after Memorial Day week, just after school was out here.
I’m deliver pizzas on my free evenings part-time.
